This document discusses common traps that companies fall into when trying to innovate, as well as remedies. It identifies four major waves of innovation focus since the late 1970s. Some common mistakes are having too narrow of a strategy scope, subjecting innovations to the same metrics as other projects, and having poor connections between mainstream and innovative business units. Remedies include broadening the innovation search, using flexible planning systems, and facilitating close connections between innovators and the mainstream business to avoid silos. Leadership, communication skills, and collaborative culture are also important for innovation success.

1. INNOVATION THE CLASSIC TRAPS HBR Article by: Rosabeth Moss Kanter

2. BACKGROUND Never a fad, but always in or out of fashion, innovation gets rediscovered as a growth enabler every half dozen years (that’s about the length of a managerial generation)

3. 4 MAJOR WAVES Late 70’s to early 80’s = Global Information Age Late 80’s = Pressure to Restructure 90’s era = Digital Mania Current wave = Global Recession

4. GLOBAL INFORMATION AGE Evolution to

5. PRESSURE TO RESTRUCTURE… take over scare of the late 80’s 1st computer reservations system

6. DIGITAL MANIA vs

7. CURRENT WAVE

8. INNOVATION Here is a chance to collect some of what is known about innovation traps and how we can avoid them REPLACE

9. STRATEGY MISTAKES Hurdles to highan scope to narrow Execs seek the next blockbuster Assuming that only new products count Launching to many minor product extensions can confuse customers and increase internal complexity

10. STRATEGY REMEDIES Widen the search Broaden the scope Take a few big bets that represent clear directions The Innovation Pyramid An Innovation strategy that includes incremental innovations

11. PROCESS MISTAKES Controls to tight = strangle innovation Subject to same budget metrics Subject to same performance metrics

12. PROCESS REMEDY The key is Flexible planning and control systems Introduce things like… Example: BBC biggest hit comedy “The Office” happened by accident when a new recruit too the initiative to use money originally allocated for a BBC Training film to make the pilot series

13. STRUCTURE MISTAKES Poor connections between greenfield and mainstream business Operating in silos, companies miss innovation opportunities Culture clashes Corp Citizens ($ makers) and Innovators (creators of the future) Example: CBS was once the world’s largest broadcaster owned by the largest recording company, yet failed to invent a music video channel…. This opportunity was done by MTV

14. STRUCTURE REMEDY Facilitate close connections bet innovators & mainstream business Loosen formal controls that would stifle innovations Flexible organisational structures allows cross functions of teams Example: Saatchi & Saatchi combined people across ad agency & technology groups to focus on customers and brands which in tuen brought about “ holistic communications” to the business

15. SKILLS MISTAKES Leadership too weak & Communication too poor Undervaluing & underinvesting in human side of innovation Teams convened without interpersonal skills can’t collaborate Example: Seagate had seven different design centers working on innovations with lowest R&D productivity, a change of CEO & COO allowed for cross functional innovation and now create electronic devices for cellphones & iPods

16. SKILLS REMEDY Select for leadership & interpersonal skills Surround innovators with a supportive culture of collaboration Value relationships to help choose the right mix of innovation teams Add cross company teams to help bridge the gaps between mainstream and innovation

17. WRAP UP Innovation involves ideas Create the future Learn from the past Get the balance right Collaborate!

19. Intrapreneuring – Gifford Pinchot’s

20. Winning Through Innovation – Michael Tushman & Charles O’Reilly

21. The Innovator’s Dilemma – Clayton ChritensenTo innovate successfully, replace common mistakes with potent remedies

22. THANK YOU Jenny Craig